Monday, October 11, 2010

Whew - the Fed is "Buying assets"


Following Friday’s disappointing jobs report, market participants are now virtually certain that the Federal Reserve will announce that it will resume buying assets at the conclusion of its November meeting and do so in a sizeable way, according to an exclusive CNBC Fed Survey.

More here:

Do you know what this means?  No?  I didn't think so.  I'm not sure either .... but what I THINK it means is the Fed is going to buy treasuries.    When the government wants to borrow money, it sells treasuries which guarantee a certain amount of interest.  If nobody wants to buy them, the Fed buys them ... i.e. you and me ... WE buy them.  So that means we're borrowing money to pay our own debt.

Pretend you were in debt over your head and your credit card bill came due and you couldn't pay it ... so you borrowed some money on another credit card to pay that bill ... that is what the Fed is doing.  Do you think this is a good idea?  If you do, you'll probably vote for Democratics. It's almost the same thing as printing money to pay bills. Do you think that printing money is free? If you do, you'll probably vote for Democratics.

If you ask me, this is EXACTLY why the government people took us off the gold standard ... so they could print money willy-nilly without having to get direct approval from the voters.

Go stock market, go!!!  Everything will be fine.  LMAO!

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